General Moly Announces Financing Update

<p> <i><b>Outstanding $10 Million Bridge Loan Extended and Company Working with Hanlong on Securing an Additional Chinese Financing Partner</b></i> </p>

Wednesday, April 03, 2013

General Moly Announces Financing Update

17:00 EDT Wednesday, April 03, 2013

LAKEWOOD, Colo. (Business Wire) -- General
Moly, Inc. (the "Company") (NYSE MKT and TSX: GMO), a U.S.-based
molybdenum mineral development, exploration and mining company,
announced an agreement with Hanlong (USA) Mining (“Hanlong”) to amend
the parties' Bridge Loan Agreement extending the maturity date of its
outstanding $10 million Bridge Loan to November 16, 2013 from April 30,
2013. The new maturity date corresponds to the deadline for Hanlong's
obligation to procure the $665 million Chinese sourced Term Loan and is
intended to provide General Moly with greater financial flexibility in
the interim. Further, the parties agreed to the expiration of the second
$10 million tranche of the original $20 million Bridge Loan Facility
effective March 31, 2013.

Bruce D. Hansen, Chief Executive Officer of General Moly, said “In
addition to extending the Bridge Loan, we are working with Hanlong to
secure another Chinese strategic partner to help advance the full
financing of the Mt. Hope Project. We feel this path provides the most
promise in the near term given China's strategic long-term view towards
moly sourcing, our current exclusivity agreement with Hanlong, and
taking into account the Company's advanced stage of loan negotiations
with China Development Bank.”

Mr. Hansen added, “The Company has made substantial progress with
regards to our preliminary construction activities at Mt. Hope including
early well field development, clearing and grubbing of terrain and
cultural clearance. Moreover, we maintain a strong liquidity position
and anticipate reporting an unrestricted cash position ranging from $54
to $58 million at the end of the first quarter with an additional $36
million in restricted cash. We will continue to prudently manage our
cash position going forward as we progress our efforts toward full
financing.”

In March 2010, Hanlong agreed to provide a $20 million Bridge Loan to
General Moly, available in two equal $10 million tranches. On April 28,
2010, General Moly drew down the first $10 million tranche. The first
tranche of the Bridge Loan bears interest at a rate tied to the LIBOR
plus 2% per annum.

General Moly is a U.S.-based molybdenum mineral development, exploration
and mining company listed on the NYSE MKT (formerly the NYSE AMEX) and
the Toronto Stock Exchange under the symbol GMO. Our primary asset, our
interest in the Mt.
Hope Project located in central Nevada, is considered one of
the world's largest and highest grade molybdenum
deposits. Combined with our second molybdenum property, the Liberty
project that is also located in central Nevada, our goal is to become
the largest pure play primary molybdenum producer in the world. For more
information on the Company, please visit our website at http://www.generalmoly.com.

Forward-Looking Statements

Statements herein that are not historical facts are “forward-looking
statements” within the meaning of Section 27A of the Securities Act, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended and are intended to be covered by the safe harbor created by
such sections. Such forward-looking statements involve a number of risks
and uncertainties that could cause actual results to differ materially
from those projected, anticipated, expected, or implied by the Company.
These risks and uncertainties include, but are not limited to, metals
price and production volatility, global economic conditions, currency
fluctuations, increased production costs and variances in ore grade or
recovery rates from those assumed in mining plans, exploration risks and
results, political, operational and project development risks, including
the Company's ability to obtain required permits to commence production
and its ability to raise required financing, adverse governmental
regulation and judicial outcomes, including recent request for
preliminary injunction and appeal of the ROD. The closing of the Hanlong
transaction and obtaining bank financing are subject to a number of
conditions precedent that may not be fulfilled. The bank financing and
subordinated loans are subject to final negotiation and satisfaction of
conditions precedent. For a detailed discussion of risks and other
factors that may impact these forward looking statements, please refer
to the Risk Factors and other discussion contained in the Company's
quarterly and annual periodic reports on Forms 10-Q and 10-K, on file
with the SEC. The Company undertakes no obligation to update
forward-looking statements.

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